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Feb 3, 2013

'Merger of 50% of DA and DR with basic pay' - Finance Ministry not agreed to the Demand

The below explanation was presented by the Minister of State for
Finance Shri.Namo Narain Meena to the questions regarding merger of DA /
DR with basic pay of Central Government employees and Pensioners in the
Parliament on 14.12.2012.

Q: Whether various Associations/ Organisations of Central Government
employees demanded merger of 50 per cent Dearness Allowance into the
basic pay of Central Government employees and pensioners and the
recommendation of the Sixth Central Pay Commission in this regard and
action taken by the Government thereto?

Reply:Yes, A number of representations have been received from
Associations/Organizations of Central Government Employees/Pensioners
and individuals demanding merger of 50% of Dearness AHowance/ Dearness
Relief with basic pay/pension respectively. The demand has been
considered by the Government and not agreed to since the 6th Central Pay
Commission has not recommended as such.

The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.